It sounds like you were rude to the support staff and that made them unwilling to investigate further. Something about honey and vinegar.
*Edit - It was the 3rd go around with their support before I started to get rude and pointed out a ton of Chinese products. By this time it was a week after they closed my shop and I was done with even trying with them.
If somebody's spent the time, money, and effort to create stuff and then put it on Etsy, it's pretty shitty to shut them down arbitrarily.
If they treat people like crap, they're going to get a lot of rude and angry support calls...